Overview
The Amit Shah announced on 23 June 2026 that two central cooperatives – NAFED and NCCF – will buy pulses and oilseeds directly from farmers. The move aims to cut out middlemen, ensure remunerative prices, and lower India’s reliance on imports.
Key Developments
- Launch of four initiatives, including the digital auctioning platform Nafex.in, to enable transparent farmer‑to‑cooperative sales.
- Two‑year deadline set for direct procurement; farmers will receive payment without intermediaries.
- Target to raise NAFED’s turnover to ₹50,000 crore after reaching ₹30,000 crore in FY25.
- Introduction of NAFED Kalyan Fund to support children of farmers in education and career development.
- Parallel launch of an auctioning module on NCCF’s existing e‑Samridhi system.
Important Facts
India currently imports 6‑7 million tonnes of pulses and 15‑16 million tonnes of edible oils each year to bridge domestic shortfalls. MSP has not been reaching growers, limiting self‑sufficiency. NAFED’s annual turnover grew from ₹500 crore in 2013 to ₹30,000 crore in FY25, now serving about 7.6 million farmers. The cooperative previously used private platforms such as mjunction, NEML and etech for auctioning roughly 2 million tonnes of commodities annually.
Exam Relevance
The initiative touches on several GS topics. It illustrates the role of cooperatives in achieving food security and farmer welfare, a recurring theme in GS 2 and GS 3. Direct procurement aligns with the “self‑reliant” agenda, reducing import dependence and stabilising domestic prices – a key concern for the economy and balance of payments. The use of a digital auctioning platform showcases the push for technology‑driven governance, relevant to GS 3 (e‑governance) and GS 4 (ethics of transparency). Finally, the emphasis on farmer income and the NAFED Kalyan Fund reflects social justice and inclusive growth, core to GS 4.
Way Forward
To realise the policy’s full potential, the government should:
- Ensure timely payment to farmers through robust banking links.
- Scale up the digital platform to cover all major pulse and oilseed varieties.
- Monitor price transmission to prevent any hidden middlemen.
- Integrate the procurement system with existing MSP mechanisms for better price assurance.
- Periodically assess impact on import reduction and farmer incomes.
Effective implementation will strengthen India’s agricultural value chain, boost farmer earnings, and move the country closer to self‑sufficiency in essential food commodities.